BELVIDERE - The Boone County Treasurer's Office is reminding businesses to adjust their cash registers to reflect the new increased sales tax rate that went into effect Jan. 1.

Otherwise, tax collectors can expect to pay a hefty sum to make up for the difference between rates.

Boone County voters approved in April increasing the sales tax one-percentage point to 7.75 percent to generate a new source of revenue for paying down past school capital debt. The tax hike shifts some of the financial burden from property owners to individuals who purchase items in the county.

It affects all sales tax rates in Boone County except for unprepared food, drugs or titled vehicle purchases.

Early estimates showed that the tax could generate $2.7 million its first fiscal year.

"Based on the calls received by my office (on Jan. 2), it's apparent that many retailers and local accountants are not aware of the change in Boone County's sales tax rate that went into effect yesterday," Boone County Treasurer Curt Newport said.

The Illinois Department of Revenue notified individuals who collect the sales tax for the state by sending electronic notifications through MyTax Illinois, a government website that allows taxpayers to file tax returns electronically, or by mailing a four-page document to individuals, spokeswoman Susan Hofer said.

Both sets of notifications were sent in November.

"We are trying to do more electronically and that is why we are using MyTax for those taxpayers using it. However, to ensure that every taxpayer receives notice, we still send paper bulletins when necessary," Hofer said.

Newport said businesses not compliant with the new tax rate would likely discover the error in February. Retailers and accountants would have filed January's tax returns by then.

"Then they will be on the hook for taxes that they never collected from their customers," Newport said.